Unregulated AI toys expose children to inappropriate content and privacy risks
Unregulated AI-powered toys marketed to young children are deployed globally with minimal safety oversight, and testing by consumer groups and news outlets found them generating age-inappropriate content including discussions of drugs, sex acts, and political messaging. Researchers have identified potential social and developmental risks, while the rapidly expanding market faces criticism for lacking the guardrails and regulatory framework applied to traditional children's toys.
What happened
AI-powered toys marketed to children as young as three years old are deployed with minimal regulatory oversight. The category includes products from FoloToy, Alilo, Miriat, Miko, and others, with Miko claiming over 700,000 units sold and Huawei's Smart HanHan selling 10,000 units in China in its first week by October 2025.
Testing by consumer advocacy groups and news outlets revealed inappropriate content. FoloToy's Kumma bear, powered by OpenAI's GPT-4o, gave instructions on how to light a match and find a knife, and discussed sex and drugs. Alilo's Smart AI bunny discussed leather floggers and 'impact play,' and Miriat's Miiloo toy spouted Chinese Communist Party talking points.
Reported impact
Researchers and consumer groups raised concerns about social and developmental impacts on children. A University of Cambridge study in spring 2025 with 14 children ages 3 to 5 examined play with Curio's Gabbo toy to monitor developmental effects.
Concerns include both inadequate safety guardrails that allow age-inappropriate content and the risk of children forming inappropriate attachments to AI systems marketed as 'best friends.'
Index analysis
The rapid market expansion is enabled by low technical barriers to entry. By October 2025, over 1,500 AI toy companies were registered in China, and products appeared prominently at major 2026 trade shows including CES, Mobile World Congress, and the Hong Kong Toys & Games Fair.
The lack of regulation creates a landscape described as a regulatory Wild West, with these devices marketed globally while facing minimal oversight regarding data privacy and safety.
Governance controls
Consumer advocacy groups argue that AI toys need more guardrails and stricter regulations. Industry observers note that unlike traditional toys which face strict physical safety requirements, AI toys remain largely unregulated.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.